Stellar (XLM) Price Breaks Out: Analyst Eyes Huge Upside Ahead

Stellar (XLM) looks like it's finally waking up. After weeks of sideways movement and declining volatility, the XLM price is starting to push higher.

Stellar (XLM) is finally showing signs of waking up after an extended period of consolidation. The cryptocurrency had been largely stuck in a range for several weeks, with low volatility and a lack of clear direction. However, that changed as April came to a close.

Stellar (XLM) Is Finally Breaking Out

After several weeks of consolidation, Stellar (XLM) appears to be finally breaking out of its range. The cryptocurrency had been largely stuck between $0.24 and $0.26 for several weeks, but it finally managed to push higher in late April.

This breakout was largely driven by a shift in technical momentum. After several months of bearish pressure, sellers seemed to be running out of steam, while buyers began stepping in more aggressively. This shift was reflected in several technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD).

One key technical pattern that formed during this breakout was an inverse head and shoulders. This pattern is formed when a security makes a series of three peaks, with the middle peak being lower than the other two. The neckline of this pattern is formed by connecting the troughs of the first and third peaks.

In the case of XLM, the left shoulder of this pattern formed in March, when the price dipped to a low of around $0.24. From there, the cryptocurrency rose to a high of around $0.26 before pulling back.

The cryptocurrency then fell to a low of around $0.23 in early April, forming the head of the inverse head and shoulders pattern. From there, the price rose again, forming the right shoulder of the pattern at around $0.25.

The neckline of this pattern was located at around $0.29. As long as the price remained below this level, the chances of a breakout were slim. However, if the price managed to break above this level, then it could open the door for a substantial rally.

XLM Price Could Soar Further

According to chart analysis shared by Ali, also known as @ali_charts on X, Stellar has formed the classic inverse head and shoulders pattern. The left shoulder appeared in March, followed by a deeper dip in early April, which became the head. Afterward, the right shoulder formed with a higher low, indicating that selling pressure was diminishing. The neckline of this pattern, formed by connecting the peaks of the shoulders, is located at around $0.29.

Now, the Stellar price has crossed slightly above that line and is trading at approximately $0.293. This breakout, if confirmed with a strong daily close, could mark the beginning of a bullish leg. As shown in the chart below, this breakout isn’t a small bump, setting the stage for a rally that could see a 10% gain.

However, Ali’s chart takes it a step further by highlighting key Fibonacci extension levels. These are commonly used by traders to project how far a breakout might run. The first major level comes in at $0.324. If the XLM price manages to clear that zone, then the next levels to watch are around $0.34 and $0.357. In the most optimistic scenario, the rally could extend all the way toward $0.37, which aligns with the 1.786 Fibonacci extension.

Of course, these levels assume that the current breakout holds and isn’t a fakeout. Several technical indicators suggest that the odds are in favor of a breakout, but anything is possible in the cryptocurrency market.

Despite this, the pattern itself is quite clear and suggests a shift in structure. With the broader market showing strength and several meme coins and altcoins also catching bids, Stellar could easily capitalize on that momentum.

As Ali noted in his tweet, “#Stellar $XLM is breaking out!” And based on what we’re seeing, he might be onto something big.